Brand Loyalty is Dead
It is said that brand loyalty only belongs to those who are in their senior years. It is expected that people in the senior years will more than likely buy the same brand through the years. However there is market research that already disproves this expectation. Because of this it is thought to be that the millennial thing of switching brands is spreading among the baby boomers. But if you ponder about it this millennial attitude of shifting brands at a drop of a hat if they are not satisfied with their experience is not something that is negative and it means you just want value for the money that you spend.
Maybe brand loyalty is what makes companies have a tendency for laziness when it comes to their products and customer service. They used brand loyalty as an excuse to rest on their laurels and not improve. But the mindset of customers these days have changes including those of our grandparents. They are more prone to buy something if they are satisfied with product there and the customer experience as well.
Where Brand Loyalty Still Exists
There are still some brands where you can find people exercising brand loyalty. One of these is fine jewelry. The second one is luxury cars. When people are loyal to a certain brand of car they are said to have automotive brand loyalty. People choose to have automotive brand loyalty for cars that show their status in life. They engage in automotive brand loyalty when using the car allows them to maintain their high status. This is the reason why you would be able to find automotive brand loyalty prevalent among the rich. It will be hard for them to shy themselves away from automotive brand loyalty because the luxury car brand that they have been using has been satisfactory for them.
For other things aside from fine jewelry and luxury cars there exists almost no brand loyalty anymore. Maybe you are thinking that you could reverse the tide in your business by giving a loyalty program to your frequent customers. You may entice them to buy because you offer discounted prices in such a program. But you should know that such kind of programs do not work anymore. People may subscribe to this at the start but they often would choose not to renew being members of such a program. What this shows is that you cannot use this as your way of sustaining the bottom line of your business.
So what does this mean for businesses when consumers are not prone to brand loyalty anymore? This shows the importance of innovation for the different businesses. They must also find news of giving satisfactory customer service.
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